Be in the know thanks to your friendly ACOs As they will tell you, it’s all about allocation, allocation, allocation

Originally Published in Statewise Fall 2008

by Karen Campbell, Katrina Burch and Jerell Lambert

If you look up the word "crucial" in the dictionary, one definition
might easily be "properly managing state agency appropriations."
What could be more crucial than correctly allocating appropriated funds and
posting accurate entries in the Uniform Statewide Accounting System (USAS)?

The appropriation control officers (ACOs) in Fiscal Management assist agencies
with this especially important job. Here are some useful facts and tips from
ACOs.

Assigning appropriation numbers for entry into USAS can be confusing. The
following lists show various types of appropriations and provide details on
how numbers are usually assigned. Please note that USAS refers to the term "program," which
is equivalent to the term "strategy" used by the Legislative Budget
Board (LBB).

Strategy/Program
For most strategy/program appropriations, a 1 will prefix
the program code to create the appropriation number. The program codes are
assigned by the LBB after the GAA is passed by the Legislature. Example: 1
+ 3001 (program code) = 13001 (appropriation number)

Rider
Generally, rider appropriation numbers begin with a 2 followed
by the last digit of the legislative session, such as 0 for
the 80th Legislature, followed by the rider number. Example: 2 + 0
+ 007 = 20007

Article IX General Provision
Typically, these numbers also begin with a 2 followed by
the last digit of the legislative session, then are followed by 9 for
Article IX and end with some part of a section number (or page number) in the
GAA that authorizes the appropriation, such as GAA, Article IX-80, Section
19.43, resulting in 20943. Example: 2 + 0 + 9 + 01 = 20901 (for GAA,
Article IX-37, Section 8.01)

Construction
As a rule, these appropriation numbers begin with a 4 followed
by the last digit of the legislative session and end with a sequential number. Example: 4
+ 0 + 001, 002... = 40001, 40002...

Non-Construction Capital Budget
These numbers generally begin with a 5 followed by the last
digit of the legislative session and end with a sequential number. Example: 5
+ 0 + 001, 002... = 50001, 50002...

Higher Education
Usually, institutions of higher education roll all strategy/program appropriations
into one appropriation number. The number begins with a 10 followed
by the agency number. Example: 10 + 731 = 10731

Know your MOFs

Within the GAA, an appropriation is structured as the sum of two parts. The
first is the appropriation itself that identifies the legislative authorization,
purpose for the appropriation and amount allotted for that purpose.

There is, however, a crucial second part to an appropriation that must always
accompany the first: the method of finance (MOF) that indicates sources of
funding.

Transaction codes used to enter an appropriation and its MOF into USAS are
determined by the sources of cash providing the funding. These sources of cash
are categorized into two funding types: committed and collected.

Committed funding

Committed funding includes General Revenue (GR), General Revenue Dedicated
funds (GRD) and other appropriated funds. Funding from these sources comes
from available fund cash and is a commitment from that specified fund cash.
Appropriations given committed funding are considered fully funded on day one
of the fiscal year.

Collected funding

Collected funding includes revenues that must be collected by an agency and
deposited to the appropriation before the appropriation can be expended. Types
of collected funding include appropriated receipts, interagency receipts, grants,
General Revenue dedicated funds and federal funds.

A good example of this is when the Legislature gives Texas Parks and Wildlife
a budget authority of $1.9 million, but state parks have to collect park fees
to fund the budget.

Partially collected budgets

It is also possible to have a mix of committed and collected funding, called
a partially collected budget.